Commercial Solar
Business Solar Rebate Australia 2026
Take our 30 second rebate quiz to see what your business qualifies for. Australian businesses installing solar in 2026 can access two major incentives that stack: the federal STC rebate (applied as an upfront point-of-sale discount) and the instant asset write-off (25 to 30% tax saving on the net cost). For most small-to-medium businesses, the combined saving is 30 to 45% of gross system cost.
By Bec Ramirez
6 min read
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Check what my business can claimThe two incentives that stack
Federal STC rebate
Applied as an upfront discount on your installer's quote. No application required. Applies to commercial systems under 100kW, and under 1MW from 1 October 2026.
Instant asset write-off
Deduct the full net cost in the year of installation. Must be installed and operational before 30 June to claim that financial year.
These two incentives are independent and stack. The STC rebate reduces your upfront purchase price directly. The instant asset write-off then reduces the taxable income you use to pay for the remaining cost. Combined, they are the most significant business solar incentives available in 2026.
Worked example: 30kW system for a small business
Business structure: company. Tax rate: 25%. Location: Sydney or Brisbane (Zone 3). FY 2025-26.
That is a saving of $15,400: 41% off the sticker price, before you count a single dollar of electricity savings. A 30kW system typically saves $8,000 to $14,000/year in electricity costs depending on your usage profile.
Victorian businesses add VEU certificate value ($1,500 to $4,000) on top, reducing the effective cost further.
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STC rebate amounts by system size (2026)
| System Size | Typical Gross Cost | STC Rebate (2026) | Common Use |
|---|---|---|---|
| 10kW | $12,000 to $16,000 | $2,242 to $3,078 | Small office, cafe, shop |
| 20kW | $22,000 to $28,000 | $4,484 to $6,156 | Medium business, small warehouse |
| 30kW | $32,000 to $42,000 | $6,726 to $9,234 | Medium warehouse, manufacturer |
| 50kW | $48,000 to $64,000 | $11,248 to $15,390 | Large warehouse, factory |
| 99kW | $90,000 to $120,000 | $22,268 to $30,476 | Industrial, large retail |
| 250kW | Varies by site | around $70,000 | From 1 October 2026 |
| 850kW | Varies by site | more than $230,000 | From 1 October 2026 |
Values up to 99kW run from Zone 4 (Melbourne and Hobart) at the low end to Zone 1 (Alice Springs and Karratha) at the high end. Most capitals, including Sydney, Brisbane, Perth and Adelaide, are Zone 3. The 250kW and 850kW figures are the Government's own worked examples for the 1MW expansion, which runs at roughly 20% of installed cost. The rebate decreases by roughly 20% each January as the deeming period shortens toward the 2030 scheme end.
State commercial solar programs
Victoria: Victorian Energy Upgrades (VEU)
Best state programThe VEU program creates Victorian Energy Efficiency Certificates (VEECs) for commercial solar installations, which your installer trades for cash value applied as an upfront discount. This stacks with the federal STC rebate.
NSW: Energy Savings Scheme (ESS) + PDRS
NSW's ESS and Peak Demand Reduction Scheme (PDRS) exist but standard commercial solar PV is not a straightforward eligible activity. Some installers may be able to access certificate pathways. Ask your installer explicitly whether ESC or PRC value is included in your quote and what the qualifying pathway is.
QLD, SA, WA, TAS, ACT, NT
Queensland has had various business energy programs. Check the Queensland Government website for current offerings as these change frequently. South Australia's REPS primarily covers energy efficiency and battery/VPP connections, with limited direct solar PV benefit. WA, TAS, ACT, and NT do not currently offer state-level commercial solar rebates beyond federal STCs.
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Based on your power bill and your business address.
Large systems: The ceiling rises to 1MW on 1 October 2026
The small-scale scheme currently stops at 100kW. Go a kilowatt over and the entire upfront discount disappears, which is why so many businesses ended up with 99.9kW systems on roofs that could carry three times that. From 1 October 2026 the ceiling rises to 1MW, a tenfold increase, and the Government puts the discount at roughly 20% of installed cost.
STCs (up to 1MW from 1 October)
- Large upfront discount (credited at point of sale)
- Based on expected generation over deeming period
- No paperwork for you, the installer handles it
- Around $70,000 on a 250kW system, $230,000+ on 850kW
LGCs (above 1MW)
- No upfront discount, earned annually from actual generation
- ~1 LGC per MWh generated (~$4 to $6 each at 2026 prices)
- Until 1 October this applies to anything over 100kW
Were you quoted 99kW? The old advice was to size at 99kW if your roof could support more, because a 101kW system received nothing upfront. That advice expires on 1 October 2026. If your quote was deliberately capped near 100kW, it is worth revisiting with the system sized to your roof and your load instead. One thing to watch: certificates are created when the system is installed and its eligibility is confirmed, not when you sign, so a large job that finishes too early can fall under the old rules.
What actually drives the saving
The rebate decides what the system costs you. These two decide what it gives back, and they are the reason two businesses can install the same 30kW system and get very different results.
Power you use on site, not power you export
Commercial feed-in rates are negotiated with your retailer rather than set by a standard tariff, and they sit well below what you pay for power. Every kilowatt-hour you consume on site saves you the full retail rate. Every one you export earns a fraction of it. This is why a business that runs weekdays in daylight does far better than one whose load sits in the evening, and why sizing to your daytime usage beats filling the roof.
Demand charges, the line most businesses do not see coming
Many commercial tariffs bill you not just for the energy you use but for your highest burst of demand in the billing period, measured in kW. Distributors move businesses onto these tariffs as usage crosses a threshold, often with little warning, and the new line item can run into thousands of dollars a year on its own.
Solar reduces it only if your peak falls in daylight hours, which is why the answer for a site that peaks early or late is usually solar plus a battery configured for peak lopping. If your bill has a “maximum demand” or “capacity” line on it, bring it to the quote: an installer who ignores it is sizing your system on half the picture.
Why timing matters
STC rebate shrinks every January
The deeming period drops by one year each January. A 30kW system installed in December 2026 generates roughly 20% more STCs than the same system installed in February 2027. That difference is approximately $1,330 to $1,862 in lost rebate value.
30 June deadline for the tax write-off
To claim the instant asset write-off in the current financial year, the system must be installed and ready for use before 30 June. Commercial installations typically take 4 to 8 weeks from quote acceptance to commissioning. If you are close to year-end, start the process now.
Scheme ends entirely in 2030
The STC scheme ends on 1 January 2031. After that, there is no federal upfront rebate for residential or commercial solar. Each year of delay means a larger share of the incentive is permanently lost.
For the full STC phase-out timeline, see our STC rebate ending guide. For detailed commercial system costs, see our commercial solar cost guide.
Frequently asked questions
What solar rebates are available for businesses in Australia?
Australian businesses can access two main incentives: (1) the federal STC rebate, applied as an upfront discount on installation, worth $6,726 to $9,234 for a 30kW system in 2026, and (2) the instant asset write-off, which lets eligible businesses deduct the full net cost in the year of installation, saving 25 to 30% in company tax. Victorian businesses can also access VEU certificates worth $1,500 to $4,000 for commercial solar. Combined, most businesses save 30 to 45% of gross system cost.
Does my business qualify for the STC rebate?
Yes, if your system is under 100kW today, and under 1MW from 1 October 2026. The Small-scale Technology Certificate (STC) scheme currently applies to commercial installations up to 100kW capacity, which covers the vast majority of small-to-medium businesses: offices, warehouses, retail, cafes, workshops. From 1 October 2026 that ceiling rises tenfold to 1MW, bringing larger factories, cold stores, farm sheds and shopping centres into the scheme. The rebate is applied as a point-of-sale discount by your installer, with no paperwork required from you. Your system must be installed by a Clean Energy Council accredited installer.
Can I claim the instant asset write-off for solar panels?
Yes. Eligible businesses can deduct the full cost of a solar system in the financial year it is installed, rather than depreciating it over time. At a 25% company tax rate, a $50,000 solar system effectively costs $37,500 after the tax deduction. At 30%, it costs $35,000. This stacks on top of the STC rebate. The system must be installed and ready for use before 30 June to claim in that financial year. Check with your accountant for current eligibility thresholds.
How much is the STC rebate for a commercial solar system?
STC rebate values depend on system size, location (STC zone), and the deeming period remaining until 2030. In 2026, approximate values are: 10kW system, $2,242 to $3,078; 20kW system, $4,484 to $6,156; 30kW system, $6,726 to $9,234; 50kW system, $11,248 to $15,390; 99kW system, $22,268 to $30,476. Once the scheme expands to 1MW on 1 October 2026, the discount runs at roughly 20% of installed cost, which the Government illustrated as about $70,000 on a 250kW system and more than $230,000 on an 850kW system. Systems in sunnier northern zones (Darwin and Mount Isa) receive slightly more than southern zones (Melbourne and Hobart).
What happens if my solar system is larger than 100kW?
Until 1 October 2026, systems above 100kW do not qualify for STCs. They generate Large-scale Generation Certificates (LGCs) under the Renewable Energy Target instead, earned annually on actual generation at roughly one per MWh rather than claimed upfront. At current LGC prices of about $4 to $6 each, a 200kW system generating 280 MWh a year earns approximately $1,100 to $1,700 annually. From 1 October 2026 this changes substantially: the small-scale scheme covers systems all the way to 1MW, so a 250kW or 500kW system earns the upfront discount instead. Only systems above 1MW stay in LGC territory. Businesses that were sized at 99kW purely to stay under the old cap should revisit that decision.
Do state governments offer additional commercial solar rebates?
Victoria has the Victorian Energy Upgrades (VEU) program, which generates Victorian Energy Efficiency Certificates (VEECs) for commercial solar, typically worth $1,500 to $4,000 for a 30kW system. NSW has the Energy Savings Scheme (ESS) and Peak Demand Reduction Scheme (PDRS), though standard commercial solar PV is not a straightforward eligible activity. Ask your installer. Queensland has had business energy programs; check the Queensland Government website for current offerings. WA and SA do not currently offer state-level commercial solar rebates.
When do commercial solar rebates decrease?
The STC rebate decreases by roughly one deeming year every January. A 30kW system installed in January 2027 generates approximately 20% fewer STCs than the same system installed in December 2026. The scheme ends entirely in 2030. There is a genuine financial incentive to install sooner: waiting one year on a 30kW system costs approximately $1,330 to $1,862 in lost STC value.
Can a trust or sole trader claim business solar rebates?
Yes. The STC rebate applies regardless of business structure: companies, trusts, sole traders, and partnerships all qualify for the upfront STC discount. The instant asset write-off eligibility depends on your business structure and turnover; sole traders and partnerships claim through their personal tax return. Speak to your accountant to confirm how the write-off applies to your specific structure.
Do I need network approval, and does it affect my rebate?
Most commercial systems need approval from your electricity distributor (the DNSP, not your retailer) before they can be connected, and above 30kW that can take weeks. Approval does not change what you are entitled to, but it does change when the system goes in, and certificates are created at installation rather than at signing. That matters around 1 October 2026, when the small-scale scheme expands from 100kW to 1MW: a job that finishes early can fall under the old rules and miss the larger entitlement. Ask your installer to lodge the connection application as early as possible, and to tell you what export limit they expect.
Can I finance the system and still claim the rebate?
Yes, as long as you own the system. The STC discount is applied at the point of sale by your installer no matter how you pay, so a cash purchase and a chattel mortgage both receive it. A power purchase agreement works differently: a third party owns the system on your roof and sells you the power, so the certificate value and the instant asset write-off sit with them rather than with you. A PPA can still be a reasonable deal, just compare it against an owned system rather than assuming the two are equivalent.
Can I claim the rebate if I lease my premises?
Yes. The discount goes to whoever buys the system, so a tenant who pays for the installation claims it. You will need the landlord's consent, and it is worth agreeing in writing what happens to the system at the end of the lease. If you are financing, keep the finance term inside your remaining lease term so you are not still paying for a system on a building you have left.
What is a demand charge, and will solar reduce it?
A demand charge bills you for your highest burst of electricity demand in the period, measured in kilowatts, on top of the energy you actually use. Distributors move businesses onto demand tariffs as usage crosses a threshold, often with little warning, and the new line can run into thousands of dollars a year on its own. Solar reduces it only if your peak falls during daylight hours. If your peak sits early morning, in the evening, or is driven by equipment starting up, the usual answer is solar plus a battery configured for peak lopping. Check whether your bill has a "maximum demand" or "capacity" line and give it to your installer, because a system sized without it is being designed on half the picture.
Why does my installer keep asking about daytime usage?
Because it decides the return. Commercial feed-in rates are negotiated with your retailer rather than set by a standard tariff, and they sit well below what you pay for power, so every kilowatt-hour you consume on site is worth several times one you export. A business running weekdays in daylight gets far more from the same system than one whose load sits in the evening. It is also why sizing to your daytime consumption usually beats filling the available roof space.
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The next step
If you're considering commercial solar for your business, Bec and the team can match you with one vetted commercial installer for a free written quote.
Written by
Aussie Mum & Energy Expert
Helps families switch to solar with practical, real-world advice. Bec focuses on the financial side: rebates, bill savings and financing options, so everyday Australians can see real value from going solar.
If you have any questions about the information in this guide, email hello@whysolar.com.au or call +61 2 5657 6527.